* Scrap all management allowances - currently payable at five levels worth between pound;1,638 to pound;10,572 to classroom teachers with extra responsibilities

* Decide who should get new TLR payments, payable at two levels between Pounds 2,250-pound;5,500 and pound;6,500-pound;11,000. They must only be for teaching and learning responsibilities. They cannot be given for recruitment and retention reasons, for tasks that could be carried out by non-teaching staff or as rewards for performance

* Completely review their staffing structures, consult staff and trade unions and publish a new structure by December 31 2005

* Heads may also have to decide whether to put “excellent teachers” in their new structure if the excellent teachers scheme is accepted by the STRB. The scheme is for the best 20 per cent of teachers who have reached level three of the upper pay scale and would offer them pound;35,000-pound;41,000. Schools will have to decide if they have enough money to fund the scheme. The DfES has yet to decide if it will contribute

* Schools will have three years to implement their new structures. Teachers facing pay cuts will have existing salaries protected for those three years